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Course List
Introduction to the Securities Industry
 
Introduction to the Securities Industry
Introduction to U.S. Securities Processing
Securities Lending and Borrowing : An Operations Perspective
Foundations of Investment Management and Buyside Operations
Dealing with Change in the Financial Markets
Collateral Management: An Operations Perspective
International Issues
 
International Securities Operations
International Portfolio Accounting
Foreign Currency: Markets, Clearance, Settlement & Accounting
Foreign Exchange: Lifecycle of a Trade
Corporate Actions
 
U.S. Domestic Corporate Actions
Global Corporate Actions
Capital Markets
 
Capital Markets Overview
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Portfolio Management
 
Portfolio Management
Securities Analysis
Managing Risk
 
Risk in a Global Market - Management and Operational Challenges Looking Forward
Financial Management
 
Financial Accounting and Financial Mathematics
Financial Statement Analysis
Fixed Income Securities
 
Bond Math: Mathematics of the Fixed Income Market
Structured Securities: MBS, ABS, CDOs
Introduction to Fixed Income Products
Accounting for Fixed Income Securities and Derivatives
Mortgage-Backed Securities
Collateralized Debt Obligations and Credit Default Swaps (CDOs and CDS)
Fixed Income Analytics
Interest Rate Swaps and Credit Default Swaps
Fixed Income Securities Trade Processing and Operations
Accounting, Regulatory & Management
 
Stock Brokerage Accounting & Securities Regulations
Introduction to Private Equity Markets
Trading After the Volcker Rule
Dodd-Frank for Non-US Derivatives Users
Complying with the MiFID II/MAR Rules
Derivatives
 
Introduction to Derivative Products
Derivatives: Markets, Operations, Accounting & Control
Derivative Products: Risk Management and Valuation
Option Valuation and Trading
Equity Derivatives: Futures and Swaps
Interest Rate Futures and Swaps
Introduction to Options: Products, Trading & Processing
Swaps Processing and Operations
Commodity Futures: Energy, Metals and Agricultural
Equity Options: Strategies, Accounting and Operations
Mutual Funds
 
Introduction to Mutual Funds
Mutual Fund Operations

Course Description
Securities Lending and Borrowing : An Operations Perspective
Available Dates:
October 11, 2018, New York
November 29, 2018, New York
Course Code: 114
Duration: 1 day
Level: Intermediate
Fee: $795.00
Instructor: Charlotte Scott
CPE Credits: 6
Prerequisite: Seminar 102 (Introduction to U.S. Securities Processing) or the equivalent is recommended (but not required).

This one-day course provides a "behind-the-scenes" perspective of a business that has experienced record levels of growth, producing a critical source of revenue for both the buy-side and the sell-side of financial industry. It is intended for an audience who is interested in receiving an overview of the securities lending business, including the motivation of participants, the lifecycle of a securities lending transaction, and resulting risks.

The main types of securities lending transaction activity will be covered, including stock borrow/loan, repo/reverse repo, tri-parties, buy/sell backs, and dollar rolls.  Participants will gain perspective on the historical evolution of this market, its place in the international financial markets today, as well as regulatory considerations, both for the U.S. markets and abroad. 

The role of institutions, investment managers, bank broker/dealers, custodians, prime brokers and industry organizations such as clearing houses and centralized securities depositories will be examined. The program will also provide insight into the "Lessons Learned" from the recent global financial crisis, and trends in the securities lending business in the post-Lehman era. 

Topics for discussion include:

Introduction to the Securities Lending Market

  • Why it exists and its historical evolution
  • Motivation of participants: bank broker/dealers, institutions, global custodians, hedge funds, prime brokers, clearing houses and depositories
  • International coverage
  • Reasons for borrowing/lending
    • Short selling
    • Fail coverage
    • Trade financing
    • Match-book
    • Arbitrage strategies
Types of Securities Lending Transactions
  • Stock borrow/loan
  • Repo/Reverse repo
  • Tri-Party programs
  • Buy/Sell Backs
  • Dollar Rolls

Life Cycle of a Securities Lending Transaction

  • Master Lending Agreements
  • Origination - opening leg
  • Finding a counterparty: agents and intermediaries
  • Counterparty Risk Management Considerations
  • Available Inventory and portfolios
  • Rebate/Fee Negotiations
  • Loan Confirmations
  • Transfer of securities and collateral
  • Loan Maintenance
  • Mark-to-Market and Margin Calls
  • Income and Corporate Action Events
  • Voting Rights and other entitlements
    • Loan recalls
      • Why they occur and how they are managed
      • Associated fails and their implications
    • Payment of rebates and fees

Collateral Management

  • Types: Cash and Securities
  • Hair-cuts
  • Collateral substitutions
  • Collateral profiles
  • Hypothecation
  • Close-outs

Risk Management and Regulatory Considerations